Navigating Uncleared Margin Rules

Are you ready for initial margin?

Find Capital-Efficient Solutions to UMR Challenges

Since Uncleared Margin Rules (UMR) went live in 2016, only a small number of firms have been impacted by Phases 1-3. But by September 2021, an estimated 1,000+ additional firms will be subject to UMR for initial margin. These firms must get ready to comply with new regulatory initial margin and reporting requirements on non-centrally cleared OTC derivatives.Initial margin (IM) is collateral posted to help reduce risk exposure to a given counterparty. Posting IM is a new step for many firms trading non-cleared OTC derivatives, and will increase a firm’s costs.

The resources here can help you understand if, when and how your firm will be impacted by UMR for IM in Phases 4-6. If your firm is in scope, CME Group offers the broadest set of global solutions to help you overcome UMR challenges. How? By minimizing UMR exposure, easing the burden of daily requirements, and reducing your notional outstanding and IM amounts.

Do You Use triResolve?

Our Solutions

CME Group offers the broadest set of global solutions to help you overcome challenges throughout the entire UMR process. These solutions enable you to meet IM requirements, gain capital efficiencies, as well as minimize costs and core business disruptions.

1. Reduce your total notional outstanding

If your firm is close to a UMR threshold, explore multiple ways to lower your AANA.

Resolve margin disputes with ease

3. Minimize margin requirements

Minimizing exposure against each counterparty and optimizing net funding amounts can help lower bilateral margin requirements.

Optimize counterparty risk exposures

Use triBalance to rebalance bilateral and cleared counterparty risk for greater margin efficiencies and to keep your portfolio market-risk neutral.

triBalance takes the next step in portfolio optimization by innovating a trusted, simple, uniform process for managing your portfolio risk and counterparty exposure.Read more >

Use voluntary clearing

Use CME Groupcleared OTC products where possible to lower requirements from 10-day margin on uncleared bilateral exposures to the 5-day margin on cleared OTC.

You also can add counterparty netting benefits by clearing all trades in a single account instead of bilaterally across multiple counterparties (UMR margins are calculated at the counterparty level).Read more >

Shift to futures

Use CME Group futures and options where possible in place of vanilla swaps to further reduce requirements to the 1-2 day margin of standardized listed products.

As with voluntary clearing, CME Group futures and options offer counterparty netting benefits.Read more >

FX Case Study: Add Up to 89% Capital Efficiencies

See the difference UMR solutions can make to your IM costs. The example below shows a real portfolio of FX options. By applying one of our solutions to address IM costs, the client can add significant potential savings. Clearing delta hedges would add to the IM efficiencies of using OTC clearing or exchange-traded derivatives.

Learn More About Our Initial Margin Solutions

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Who We Are

CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.